The Best Investment Manager's Report: Tech stocks slide as Nvidia earnings loom
The stock market closed lower Wednesday, with tech stocks leading the decline as investors awaited Nvidia's quarterly results. The Dow Jones Industrial Average fell 0.4%, the S&P 500 dropped 0.6%, and the Nasdaq fell 1.1%.
All eyes are on Nvidia (NASDAQ:) as the chipmaker's earnings report approaches. The stock fell 2% ahead of the results, as investors exercised caution. Analysts expect earnings of $0.644 per share on revenue of $28.68 billion, an improvement from the previous quarter.
Nvidia's shares have soared 160% this year, driven by growth in artificial intelligence investment. The company is a key player in AI chip manufacturing, making it a barometer for AI demand.
In other news, Super Micro Computer Inc (NASDAQ:) tumbled 19% after announcing a delay in publishing its annual results. Short-seller Hindenburg raised concerns about accounting issues and questionable shipments, adding pressure to the semiconductor sector.
Retailers also reported mixed earnings. PVH (NYSE:) and Bath & Body Works (NYSE:) saw declines, while Abercrombie & Fitch (NYSE:) warned of uncertainties. However, Kohl's (NYSE:) outperformed expectations, and Chewy (NYSE:) impressed with strong earnings, sending its stock up 11%.
Cryptocurrency-related stocks followed the market lower, with Coinbase Global Inc (NASDAQ:), Riot Platforms (NASDAQ:), and MicroStrategy Incorporated (NASDAQ:) feeling the pressure as Bitcoin dipped below $60,000.
In summary, the market saw a mixed day with tech stocks under pressure and retailers reporting varied results. Investors are eagerly awaiting Nvidia's earnings report to gauge the future of the semiconductor sector and overall market sentiment. Stay tuned for more updates on market trends and opportunities.